Tribal farmers are most vulnerable to climate variability and change (CVC) due to their climate sensitive livelihoods and lack of resources to afford the adaptation measures. In order to formulate appropriate programs and policies addressing climate change, it is essential to understand their adaptive capacity (AC). This study analyzed the level of adaptive capacity (AC) of tribal dairy farmers' households of Himachal Pradesh, part of western Himalayan region (one of the fifteen agro-climatic zones in India), and confronting the factors that cause the differences in adaptive capacity (AC). Based on the previous studies, adaptive capacity of each household was determined by developing a composite adaptive capacity index by using method of principal component analysis (PCA) with the help of statistical software SPSSv21. Adaptive capacity index (ACI) was developed underlying the definition of adaptive capacity (AC) as put forward by IPCC (2007), consisting of five index components namely human capital, physical capital, financial capital, social capital and natural capital. Results showed that variations in adaptive capacity index were caused by differences in human capital, physical and financial capital. Tribal households that scored low in these three indicators had lower adaptive capacity (AC). Adaptive capacity index (ACI) indicated that 31.88 percent of sampled household have low level of adaptive capacity with wide variation in index score of components of adaptive capacity across the villages and households, which were highly vulnerable to climate variability and change (CVC). Naurangabad village of Sirmaur district have lowest score (0.70±0.03) of Adaptive capacity index (ACI) among the entire selected villages. To cope up the adverse climatic conditions and for the sustenance of dairy farming in the study area, the appropriate climate resilient policies will be required for incentivizing the livelihoods infrastructure, promotion of grass root level innovations and to increase adaptive capacity of tribal dairy farmers by using locally available resources.